COLUMBUS, Ohio ? U.S. middle-market companies continued to grow heading into 2026, but the pace slowed and business confidence weakened as executives faced rising costs and more uncertain demand.

According to the latest National Center for the Middle Market report, year-over-year revenue and employment growth dropped to their lowest levels since the post-pandemic recovery began in late 2021, even though a large majority of companies still reported revenue gains.

That caution has been visible in banking as well. Banking Dive reported in March that large lenders such as Wells Fargo are intensifying competition for middle-market clients at a moment when those firms are seeking steadier coverage, better products and more flexible financing.

A separate survey highlighted the mixed mood among similar firms. New Jersey Business Magazine said Valley Bank found strong 2025 performance among commercial and industrial middle-market businesses, but also noted growing concern about cash flow, cost pressure and the broader global environment.

Taken together, the data suggested that middle-market firms still view themselves as resilient, but are entering 2026 with far less appetite for aggressive expansion than they showed a year earlier.